Asia-Pacific Cloud Computing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 131.36 Billion |
| Market Size (2029) | USD 292.45 Billion |
| CAGR (2024 - 2029) | 17.37 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Cloud Computing Market Analysis
The Asia-Pacific Cloud Computing Market size is estimated at USD 131.36 billion in 2024, and is expected to reach USD 292.45 billion by 2029, growing at a CAGR of 17.37% during the forecast period (2024-2029).
- The APAC region is home to diverse local economies, each with its unique economic, technological, and demographic trends. While developed economies like China, Japan, and Australia lead the way, developing nations such as India and Indonesia are emerging as significant players in cloud development. From an IT standpoint, the cloud standardizes environments and scales back-end systems, granting IT teams access to proven tools for system development.
- According to a study by Red Hat Inc., cloud technology has emerged as the frontrunner in Asia-Pacific, with approximately 85% of business leaders indicating their organizations have initiated adoption. In Southeast Asia, sectors like IT, Telecom, and manufacturing are rapidly embracing cloud computing. Consequently, major cloud providers, including Google Cloud, Amazon Web Services, and Microsoft Azure, are channeling investments into the APAC region. For example, in March 2023, Amazon Web Services allocated a substantial USD 6 billion in Malaysia for cloud data center development. Moreover, AWS's cumulative investments in Southeast Asian nations, including Indonesia, Singapore, and Thailand, have reached an impressive USD 22.5 billion.
- Companies across the APAC are increasingly integrating emerging technologies into their operations. An industry expert survey highlighted Japan's leadership in this trend, with about 86% of Japanese executives confirming full adoption of cloud computing. Notably, around 65% of these executives cited the technology's pivotal role in enhancing competitiveness and safeguarding jobs as a primary reason for its adoption.
- As generative AI (GenAI) takes center stage, the cloud's multifaceted nature is poised to play an even more significant role in the AI-driven future. Projections suggest that by 2027, GenAI will revolutionize the refactoring of legacy applications, with enterprises leveraging GenAI tools and cloud platforms to handle approximately 65% of code conversion and development tasks.
- One significant challenge of relying on a single cloud provider is the risk of vendor lock-in, which can create financial or logistical dependencies. Coupled with political considerations, this challenge underscores the rising popularity of multi-cloud strategies.
Asia-Pacific Cloud Computing Market Trends
BFSI To Hold a Significant Share
- Cloud banking denotes the Internet-based, on-demand provision of banking services by financial institutions. Mirroring other cloud computing services, it hinges on remote access to computing resources, encompassing physical servers, virtual servers, data centers, Software-as-a-Service (SaaS), and beyond. From 2024 to 2026, the banking sectors in Singapore, Malaysia, and India are poised for rapid cloud integration, spurred by socio-economic advancements and strategic industry realignments.
- Singapore's banking landscape harnesses cloud technology for enhanced flexibility, intertwining AI and ML to deliver data-centric, customer-oriented services. Malaysia's MyDIGITAL initiative, targeting a 2030 vision, seeks to crown the nation as a digital and cybersecurity frontrunner, with cloud computing playing a pivotal role. India, having navigated initial hesitations around security and compliance, now recognizes cloud adoption as a catalyst for heightened agility, scalability, and market adaptability.
- As digital payments surge in India, the momentum for cloud computing adoption is set to escalate. The financial services domain in India is on the brink of a cloud computing surge, with industry players like Axis Bank, Paytm, Upstox, Cred, and ICICI Lombard Insurance already onboard. Notably, Axis Bank harnesses the capabilities of Amazon Web Services (AWS), a flagship of Amazon's cloud computing suite.
- Asian Banker highlights a trend where numerous financial institutions are gravitating towards a hybrid multi-cloud approach. This strategy melds services from at least two public cloud providers with private clouds and on-premise setups. Such a hybrid model allows for customer data to reside on public cloud servers, while sensitive information remains securely in-house. This approach not only fortifies data security but also trims down the costs and complexities tied to traditional physical data center storage.
- In terms of migrations, UnionBank of the Philippines transitioned from a solely on-premise setup to a cloud-first strategy roughly five years back, setting its sights on becoming a cloud-exclusive bank within the next two years.
- Among the leading cloud providers, Google Cloud Platform (GCP) has carved a niche for itself. GCP boasts a holistic suite of solutions, meticulously crafted to address the distinct challenges and requirements of Asia's BFSI sector.
China To Hold Significant Growth
- Chinese companies have reaped substantial benefits from adopting cloud computing technologies. These advantages encompass enhanced IT operational efficiency, a lighter IT maintenance workload, and notable cost savings. As part of its 'new infrastructure' initiative aimed at accelerating digital transformation, the Chinese government has consistently backed local cloud providers. Recently, Beijing has pledged a whopping USD 1.4 trillion to bolster its tech platforms.
- China has set an ambitious target: elevate the core digital economy's contribution to GDP from 7.8% in 2020 to 10% by 2025. According to TCS (TATA Consultancy Services Limited), leading Chinese cloud providers, including Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu AI Cloud, have capitalized on the burgeoning demand for cloud services, collectively commanding a dominant 79% share of the nation's cloud expenditure, marking a robust 19% year-on-year growth.
- In China's diverse industrial landscape, e-commerce stands out as a frontrunner in adopting cloud-based software solutions. The rise of expansive AI applications has rendered cloud products not only more potent but also widely accessible. Within the e-commerce realm, AI is adeptly managing customer grievances, with continuous enhancements to its capabilities. SAP SE's analysis highlights that, as of 2023, China boasts a commanding 30% share of AI investments in its commerce and retail sectors.
- On the partnership front, Chinese firms are actively pursuing collaborations with Microsoft's cloud services. A notable instance is Sichuan University, which, in April 2024, revealed its plans to develop a generative AI platform. The university's tender document disclosed its acquisition of 40 million Microsoft Azure OpenAI tokens, underscoring its commitment to the project.
Asia-Pacific Cloud Computing Industry Overview
The Asia-Pacific cloud computing market is characterized by intense competition and a trend towards fragmentation, largely due to the presence of several dominant players. These key players, including Microsoft Corporation and Alibaba Group Holding Limited, are at the forefront of driving advancements in the market. Notable developments include:
- July 2024 - Alibaba Group Holding's cloud computing division is revolutionizing the transmission and consumption of Olympic content, marking a pivotal moment in sports broadcasting history. Partnering with Olympic Broadcasting Services (OBS), Alibaba Cloud introduced OBS Cloud 3.0, a cutting-edge AI-driven platform set to be the primary content distribution method for the Paris Games. Beyond mere distribution, Alibaba's AI technologies will enhance Olympic broadcasts, with plans to utilize large language models to support official commentators during the Games.
- April 2024 - Microsoft unveiled a USD 2.9 billion investment plan, set to unfold over the next two years, aimed at bolstering its hyperscale cloud computing and AI infrastructure in Japan. In addition, Microsoft is set to broaden its digital skilling initiatives, targeting AI competencies for over 3 million individuals in the next three years. The tech giant is also inaugurating its inaugural Microsoft Research Asia lab in Japan and is intensifying its cybersecurity partnership with the Japanese government.
Asia-Pacific Cloud Computing Market Leaders
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Microsoft Corporation
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Alibaba Group Holding Limited
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Amazon.com Inc.
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Oracle Corporation
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Salesforce.com Inc.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Cloud Computing Market News
- August 2024: SK Telecom (SKT) revealed a new partnership with Lambda to advance its AI cloud business efforts in South Korea. Through this partnership, SKT will introduce AI cloud services, such as GPU-as-a-Service (GPUaaS), allowing businesses to tap into GPU cloud resources on demand for AI development and applications.
- May 2024: Microsoft announced significant commitments to build new cloud and AI infrastructure in Thailand, provide AI skilling opportunities for over 100,000 people, and support the nation’s growing developer community. The commitments build on Microsoft’s memorandum of understanding (MoU) with the Royal Thai Government to envision the nation’s digital-first, AI-powered future.
Asia-Pacific Cloud Computing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Ecosystem Analysis
4.4 Assessment of Macro Economic Trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Robust Shift Towards Digital Transformation Across APAC
5.1.2 Decline of Traditional Data Center Outsourcing (DCO)and Adoption of Hybrid Infrastructure Services
5.2 Market Restraints
5.2.1 Regulatory Compliance and Data Breaching Risk
5.3 Pricing Model Analysis
5.4 Cloud Computing Trends in Asia-Pacific
5.4.1 Adoption of Digital Transformation in SMEs in developing countries
5.4.2 Increase in Adoption of Edge Computing to bring low-latency
5.4.3 Increasing Internet traffic Across both Fixed and Mobile Networks in APAC countries
5.5 Number of Data Centers in Asia-Pacific
5.6 Industry Regulations and Standards
5.7 Case Study Analysis
5.8 Technology Landscape (Cloud AI; Evolution of Serverless Computing; No-Code and Low-Code Platforms)
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Public Cloud
6.1.1.1 IaaS
6.1.1.2 PaaS
6.1.1.3 SaaS
6.1.2 Private Cloud
6.1.3 Hybrid Cloud
6.2 By Organization Size
6.2.1 SMEs
6.2.2 Large Enterprises
6.3 By End-user Industries
6.3.1 Manufacturing
6.3.2 Education
6.3.3 Retail
6.3.4 Transportation and Logistics
6.3.5 Healthcare
6.3.6 BFSI
6.3.7 Telecom and IT
6.3.8 Government and Public Sector
6.3.9 Other End-user Industries (Utilities, Media & Entertainment etc)
6.4 By Country
6.4.1 China
6.4.2 Japan
6.4.3 India
6.4.4 South Korea
6.4.5 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Microsoft Corporation
7.1.2 Alibaba Group Holding Limited
7.1.3 Amazon.com Inc.
7.1.4 Oracle Corporation
7.1.5 Salesforce.com Inc.
7.1.6 Huawei Cloud Computing Technologies Co., Ltd.
7.1.7 Google LLC.
7.1.8 IBM Corporation
7.1.9 SAP SA
7.1.10 AMELA Technology JSC
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Cloud Computing Industry Segmentation
Cloud computing delivers a range of services over the internet, encompassing servers, storage, databases, networking, software, analytics, and intelligence. This approach fosters quicker innovation, adaptable resources, and economies of scale. Our study focuses on the Asia-Pacific (APAC) cloud computing market. We gauge the market size by analyzing the revenue generated from cloud computing services by various players in the region. Additionally, we monitor key market metrics and growth influencers, bolstering our market estimates and growth projections for the forecast period. Our analysis draws from insights gathered through both secondary research and primary sources.
The Asia-Pacific cloud computing market is categorized by type (public cloud [IaaS, PaaS, and SaaS], private cloud, hybrid cloud), organization size (SMEs and large enterprises), end-user industries (manufacturing, education, retail, transportation and logistics, healthcare, BFSI, telecom and IT, government and public sector, and others), and country (China, Japan, India, South Korea, and the rest of Asia-Pacific). We present market sizes and forecasts in terms of value (USD) across all segments.
| By Type | |||||
| |||||
| Private Cloud | |||||
| Hybrid Cloud |
| By Organization Size | |
| SMEs | |
| Large Enterprises |
| By End-user Industries | |
| Manufacturing | |
| Education | |
| Retail | |
| Transportation and Logistics | |
| Healthcare | |
| BFSI | |
| Telecom and IT | |
| Government and Public Sector | |
| Other End-user Industries (Utilities, Media & Entertainment etc) |
| By Country | |
| China | |
| Japan | |
| India | |
| South Korea | |
| Rest of Asia-Pacific |
Asia-Pacific Cloud Computing Market Research FAQs
How big is the Asia-Pacific Cloud Computing Market?
The Asia-Pacific Cloud Computing Market size is expected to reach USD 131.36 billion in 2024 and grow at a CAGR of 17.37% to reach USD 292.45 billion by 2029.
What is the current Asia-Pacific Cloud Computing Market size?
In 2024, the Asia-Pacific Cloud Computing Market size is expected to reach USD 131.36 billion.
Who are the key players in Asia-Pacific Cloud Computing Market?
Microsoft Corporation, Alibaba Group Holding Limited, Amazon.com Inc., Oracle Corporation and Salesforce.com Inc. are the major companies operating in the Asia-Pacific Cloud Computing Market.
What years does this Asia-Pacific Cloud Computing Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Cloud Computing Market size was estimated at USD 108.54 billion. The report covers the Asia-Pacific Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Cloud Computing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Cloud Computing Industry Report
Statistics for the 2024 Asia-Pacific Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Cloud Computing analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
